A recent Credit Union National Association (CUNA) report examines the chief reasons for individuals being unbanked/underbanked and offers recommendations regarding the circumstance.
The analysis outlines obstacles and viable solutions for improving financial inclusion while also identifying the chief reasons individuals are unbanked/underbanked.
“This research underscores how important it is to remove barriers to financial access for the unbanked and underserved,” Ryan Donovan, CUNA chief advocacy officer, said. “For over 100 years, America’s credit unions have promoted thrift and provided access to credit for provident purposes. We look forward to working with policymakers to apply these findings and explore meaningful solutions that improve financial well-being for everyone.”
Methods of addressing the challenges, per the report, include ensuring access to verifiable identification; encouraging recipients participating in direct payment government benefit programs to open basic, low-cost accounts; the use of public policy to encourage public/private partnerships as a means of continuing to innovate and meet the changing needs of households and individuals; and encouraging the financial services industry to continually embrace approaches with a proven track record of success.
The report has also recommended continued examination of factors contributing to the decline in the unbanked rate for Black and Hispanic households from 2015 to 2019. Credit unions should promote financial well-being and community advancement as an extension of its congressional mandate.